http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.24Change: 0.09
R/$ = 10.57Change: 0.03
Au 1306.05 $/ozChange: -6.58
Pt 1486.50 $/ozChange: -2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 05, 2012

Transport giant sees SA rail success as integral to African aspirations

Back
Berlin|Salzgitter|Africa|Alstom Transport|Components|Lafarge|Locomotives|PROJECT|Transnet|Africa|Algeria|Brazil|China|Germany|India|Kazakhstan|Morocco|Russia|South Africa|Technology Transfer|Transport|Andreas Knitter|Henri Poupart-Lafarge|Rail|Locomotives|Central Europe|North Europe|South Africa|Sub-Saharan Africa
berlin|salzgitter|africa-company|alstom-transport|components|lafarge|locomotives|project|transnet|africa|algeria|brazil|china|germany|india|kazakhstan|morocco|russia|south-africa|technology-transfer|transport-industry-term|andreas-knitter|henri-poupart-lafarge|rail|locomotives-product|central-europe|north-europe-region|south-africa-region|subsaharan-africa
© Reuse this



Africa is a big potential growth market, given the urbanisation occurring on the continent, and winning the tender for the Passenger Rail Agency of South Africa’s (Prasa’s) fleet renewal programme would be a key milestone for the company, Alstom Transport president Henri Poupart-Lafarge told South African journalists during a media visit in Berlin last month.

He noted that, if successful, this would enable Alstom Transport to establish a base in South Africa from where it could eventually serve the rest of Africa.

Poupart-Lafarge noted that the R123-billion Prasa tender, which was aimed at the procurement of 7 224 new commuter coaches over 20 years in two ten-year contracts, and for which bids closed at the end of September, was a complex tender for both Alstom and South Africa, given the 65% localisation target.

Nevertheless, he believes Alstom has proved it is serious about localisation and technology transfer.

Alstom again reiterated its successful localisation strategies in other emerging econo- mies, including Brazil, Russia, India, China, Morocco, Algeria and Kazakhstan.

Further, Poupart-Lafarge said that, while Alstom was used to complex tenders, this was a particularly complex one, especially given the black economic-empowerment (BEE) requirements, which were expected to be announced by Prasa at the end of September.

BEE investors were expected to obtain a 30% equity interest in a project company that would be established to manufacture the passenger coaches.

Meanwhile, Alstom Transport was also planning to participate in Transnet Freight Rail’s (TFR’s) tender to procure 599 new dual- voltage electric locomotives for its general freight business by 2019. TFR’s tender is also subject to a localisation target of 60%.

Poupart-Lafarge stated that, if Alstom Transport failed to secure either of these tenders, it would be difficult to enter the South African market, given the size of the domestic rail market.

He noted that the company would have to ensure that there was an adequate economic incentive to establish a base in South Africa.

Meanwhile, Alstom Transport senior VP for North and Central Europe and Africa Andreas Knitter agreed that securing a substantial order in South Africa would enable the company to make further inroads into the rest of sub-Saharan Africa.

There was good opportunity in the region, but entry into that market would not be quick and not of the same magnitude as in South Africa, he said.

High-Speed Rail
Poupart-Lafarge said marketing very high-speed rail offerings to the South African market was not a priority for Alstom Transport at this stage.

He indicated that the distances between most of South Africa’s major cities made it unfeasible to launch such services, as it was best to limit high-speed transport between two cities to three hours.

Meanwhile, Alstom Transport also hosted South African journalists at one of its largest manufacturing factories, in Salzgitter, Germany.

The 200 000 m2 factory employs between 2 400 and 2 500 staff and produced about 140 trainsets, with on average four cars per trainset, in 2010. This will increase to about 210 trainsets a year over the next three years.

The Prasa tender will require the manufacture of about 360 cars a year.

The factory also produces about 1 000 bogies a year and undertakes the repair of about 3 600 freight locomotives a year.

Most manufacturing processes in the train manufacturing sector are not conducive to auto- mation, given that only a limited number of the same components are reproduced for any given contract.

Further, machines are not precise enough to achieve the required tolerances.

This means that a high number of skilled individuals, including welders, are required to work in such factories.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Updated 1 hour 47 minutes ago The BMW Group on Tuesday named Tim Abbott as the new BMW South Africa (BMW SA) MD. Abbott is currently the MD of BMW Group UK, a post he has held since February 2009. He is 57 years old, was educated at Loughborough University and is married with three children.
The Ilanga II
The University of Johannesburg (UJ) will participate in the Sasol Solar Challenge 2014 with its latest solar car, the Ilanga II. Ilanga is the isiZulu word for the sun.
The Department of Transport (DoT) was engaging with the Passenger Rail Agency of South Africa, the Gautrain Management Agency (GMA) and the Gauteng DoT with regard to implementing a compliant, interoperable transport smartcard system, Transport Minister Dipuo Peters...
More
 
 
Latest News
Nersa's Thembani Bukula
Updated 17 minutes ago A standardised tariff for electricity resellers is needed to avoid consumers being overcharged, energy regulator National Energy Regulator of South Africa (Nersa) said on Tuesday. "The pressing problem right now is that there is a standardised tariff that they...
Economic Development Minister Ebrahim Patel
Updated 25 minutes ago Economic Development Minister Ebrahim Patel says government will be prioritising six ‘I’s as part of its “radical economic transformation” agenda for the coming five years. Delivering his Budget Vote in Parliament on Tuesday, Patel said the six components...
Venetia mine
Updated 37 minutes ago In what could be the single-largest contract awarded to construction major Murray & Roberts (M&R) since the Eskom power build programme, M&R subsidiary M&R Cementation has secured a R2.6-billion contract to develop an underground mine beneath diamond major De...
More
 
 
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Local aerospace company Denel Aerostructures (DAe), part of the State-owned Denel Group, has won a fourth contract to manufacture parts for the Airbus A400M military air transport and air-to-air refuelling aircraft. The new contract, which was won in an international...
Bob Skinstad
Although CEO Mark McChlery and chief marketing officer Bob Skinstad likened themselves to children in a playground when taking on the task of “reengineering and repositioning” the Seartec brand, the “young, dynamic and enthusiastic guys” were like proud...
An increasing number of buyers, in both the new and used car markets, are opting for finance structures that lower their monthly repayments, says asset financing company WesBank. These include the use of large balloon payments (also known as residuals), as well as...
Tertiary education institutions can use search engine giant Google’s Chromebook to provide secure mobile end-point devices for students on which they can share documents, work collaboratively on documents and access education materials and applications being used...
Local ceiling and partition company Abbeycon has beaten global competition at the Saint-Gobain Gypsum International Trophy competition, which was held last month in Berlin, Germany.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks